Freeport Indonesia has reduced its copper ore production to 60% of capacity

Tri Winarno, a senior official in the Energy and Mineral Resources Ministry, said that PT Freeport Indonesia had reduced its copper mining capacity to 60% due to increasing stockpiles.

Indonesia has banned the export of unprocessed ore to encourage domestic processing. Freeport is currently repairing its new smelter following an October fire. It has also requested a temporary extension of the export permit for its copper concentrator.

Tri, a reporter, said that the exact period of time when mining activities were reduced was not known.

Tri stated that there was no decision on Freeport's application yet and there were requirements the miner had to meet.

Freeport stated that it was unable to comment immediately.

Two sources familiar with the situation said that the company expects to resume copper concentrate shipments from Indonesia in this month.

According to a source who has direct knowledge of the situation, the firm will begin loading cargoes bound for China by Friday in anticipation of receiving a licence to export by month's end.

Tri replied, "They cannot export until there is an export recommendation from the mining ministry" when asked about a possible shipment to China. (Reporting and editing by John Mair; Bernadette Christina munthe, Fransiska nangoy)

(source: Reuters)